When buying a home, you need to keep track of dates very closely. For example, for those who want to apply for a BTO flat during the October 2024 BTO sales launch, you should note that it is open between 16 October to 23 October, 11.59 p.m.
Even before applying for a flat at the October 2024 BTO sales launch, prospective flat buyers must secure their HDB Flat Eligibility (HFE) letter before they can apply for a flat. Since HDB takes about a month to process an HFE letter application after receiving all the required documents, those who want to apply for a BTO should have submitted all required documents for their HFE application by 15 September 2024.
Having to keep track of dates does not end at the application stage. The real timeline as a flat buyer begins when you successfully apply for a BTO flat – signing the Agreement for lease. At this moment, the cost of turning back (i.e. cancelling the flat booking) will result in having to forfeit 5% of the flat purchase price. You may find that the Agreement also comes with a number of different dates, including the “date of sale”.
Amongst these dates, some are more critical to know before you collect your keys, while the other dates become more important to know after you have collected your keys.
Here are 6 dates that new HDB flat buyers need to know upon signing their agreement for lease.
#1 Probable Completion Date (PCD) vs Delivery Possession Date (DPD)
When flat buyers sign their HDB lease agreement, the one thing they want to know is when they may take possession of their unit.
To get a rough idea, flat buyers can look for two dates in the Agreement for Lease. One is the Delivery Possession Date (DPD), and the other is the Probable Completion Date (PCD).
The Delivery Possession Date can be considered as an almost guaranteed date by which you will receive possession of the flat as it is the date by which HDB is required under the Agreement for Lease to deliver possession of the flat.
On the other hand, the Probable Completion Date is the estimated completion date, which simply implies that it is the time period by which HDB thinks it is likely for the project to be completed by. In most instances, the PCD is around one year earlier than the DPD.
While you can take reference from the PCD, there are unforeseen instances that can delay the delivery of the project until the DPD or even later. One clear example was when the pandemic struck in 2020, and construction on the Build-To-Order (BTO) housing projects was delayed.
While uncommon, once the DPD has passed, HDB give you updates on updated Probable Completion Date – and buyers may receive compensation due to the delay.
Read Also: Why It Doesn’t Make Financial Sense To Give Up Your HDB BTO Flat Due To Construction Delays
#2 Temporary Occupation Period (TOP) Date
During a project’s construction phase, flat buyers would be keen to keep track of the Temporary Occupation Period (TOP) date. When a new project receives TOP, it means that new flat owners will be able to occupy their unit even if the project’s development, such as the surrounding amenities or landscape work, is not completely finished. It is for this reason that the TOP date is viewed more significantly by homeowners than the legal completion date.
The TOP date could also coincide with the key collection date for some homeowners.
Read Also: Will Your HDB BTO Key Collection Date Be Delayed, And Can You Further Defer?
#3 Lease Commencement Date
Another important date that homeowners should take note of is the lease commencement date. It can be simply thought of as the month and year from when the lease (i.e., 99-year lease, 999-year lease, or freehold) on the property starts. This is critical to take note of as it determines when the tenure of the property starts and, therefore, the age of the property.
For HDB flats, the 99-year lease commencement date starts from when the first occupiers take possession of the keys to their flat. This is unlike private property where the lease commencement date could start upon the developer’s ownership of the land. Therefore, a 99-year leasehold may have run down a few years before the owners take possession of the unit.
It is possible that even though the lease commences in the same year for an HDB block, the remaining lease could still differ by a few months for the different residents. This is due to the different time periods in which each resident may have collected their keys or taken possession of their unit.
For example, we can see that the lease for 157 Lor 1 Toa Payoh started in 1971. But the remaining lease for each unit could differ between 48 years and 2 months and 49 years, a difference of about 10 months.
#4 Minimum Occupation Period (MOP)
Once you collect the keys to your flat, it starts off an important countdown known as the Minimum Occupation Period (MOP). The MOP is the minimum period that the flat owner is required to physically occupy the unit before you are allowed to sell the flat on the open market or rent out the entire flat.
The MOP duration, which depends on the purchase mode of the HDB flat, could range between 5 years for BTO and resale flats, to 10 years for flats in Prime or Plus projects, and up to 20 years for flats bought under the Fresh Start Housing Scheme.
The MOP is calculated from the date that you collect the keys to your flat and excludes any period where you do not occupy the flat. Hence, for BTO flat owners, the lease commencement date is also when their MOP starts.
If the fiancé/fiancée couple have booked a BTO flat that is completed, they must produce their Marriage Certificate for inspection by HDB within three months of taking possession of the flat.
Also, applicants or occupiers who are existing tenants of an HDB rental flat must terminate their tenancy and surrender vacant possession of the rental flat to HDB within four months from the date of taking possession of the new flat.
Lastly, an applicant or occupier listed in the application who is an owner of an existing HDB flat (including a Design, Build & Sell Scheme (DBSS) flat) must dispose/relinquish his/ her interest in the existing flat within 6 months from the date of taking possession of the new flat.
Read Also: 6 Lesser-Known Facts About Minimum Occupation Period (MOP) For Singaporeans
#5 Defects Liability Period (DLP)
As a new HDB flat owner, you have 7 days to return the Resident Feedback Form to the Building Service Centre (BSC), which you will be provided with during key collection. You can then arrange for a joint inspection with the project contractor to verify the defects that you have spotted and allow them to make rectifications where necessary.
HDB provides all new HDB flat owners with a 1 year Defects Liability Period (DLP) where any reported flaws and defects are rectified by the project contractor within 14 days. Additionally, HDB also provides warranty coverage for ceiling leaks, external wall seepage, and spalling concrete as per itemised in the table below.
IssueWarranty PeriodCeiling leak at toilets/kitchen5 years*Water seepage from external wall5 yearsSpalling concrete10 years
*The warranty for ceiling leak will cease if floor tiles have been changed; or if the waterproofing system has been tampered with. Source: HDB
Do take note of the warranty period for the different issues, as it is often assumed by most to have lapsed together with the 1 year DLP. It is also one of the dates that you may need to take note of the longest, though it may not be as essential as the other dates.
#6 Legal Completion Date
The legal completion date, also known as the Certificate of Statutory Completion (CSC), marks the completion of all building work on the project. It is applied by the project developer from the Building and Construction Authority (BCA) at the later stage of the project’s development. It assures homeowners that there are no more pending works left.
Therefore, this is the final date by which you can expect to no longer see any hoardings or unfinished landscape around your estate.
Read Also: Here’s How CPF Accrued Interest On Your Home Affects Your Retirement Planning
This article was originally published on 15 July 2022.
The post 6 Dates That HDB BTO Flat Buyers Need To Know That Are On Their Agreement For Lease appeared first on DollarsAndSense.sg.
